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African Partnerships to Increase Arla’s African Income Five Fold

GLOBAL- Danish dairy cooperative Arla has announced two joint ventures in Western Africa that will increase sub-saharan revenue from €90 million to €460 million by 2020.

Agreements with Nigerian processor Tolaram and the Senegalese Attieh Group are expected to boost Arla’s revenue by €240 million and €32 million respectively.

This will significantly grow the company’s presence in Nigeria, currently based on distribution agreements, and open up Senegal for the first time.

This is according to Steen Hasberg, regional director, who said Nigeria’s position as one of Arica’s biggest dairy markets made cracking Nigeria key to succeeding in Africa.

“The population is growing at a rate of two to three per cent per year, and people are young, ambitious and increasingly well educated,” said Mr Hasberg. “This makes Nigeria a perfect market for Arla’s Africa strategy, and we expect the new joint venture to start up its sales in the market in September.”

Arla has said it will own a 50 per cent share in the Nigerian venture and a 75 per cent share in Senegal.

Products Arla distributes in Africa are largely liquid and powder milk on the Arla Dano brand.